1. Get prequalified. Find out how much home you can afford.
2. Find a home. Work with your agent to find your dream home and make an offer.
3. Get a mortgage. Make a plan that meets both your current and future goals. Our home lending experts will help you!
4. Close. Become the legal owner of your new home!
5. Move in. One journey ends and another begins!

Typically, you will need to put down between 3% and 20% to qualify for a conventional loan, but there are also exceptions. You may be eligible for zero down payment options if you are a veteran, or USDA Rural Development Loan Programs

Why 20% is considered ideal

Putting down 20% or more comes with several benefits. The more money you put down, the lower your payment will be, but at 20% or more you avoid paying mortgage insurance. Additionally, you might receive reduced interest rates, and it may help you be a more competitive buyer and stand out to sellers, especially if there are multiple offers on the home.

Less than 20% down is okay too

If you have less than a 20% down payment, you still have options! Our Real Estate Loan Officers can help guide you through the decision making process, to help you achieve both your short term and long term financial goals.

Lenders look at a variety of factors when determining if you qualify for a loan.
The 4 C's of Qualifying for a Loan:

Character represents your credit history or financial integrity. Your credit score, how much credit you’ve used in the past, and whether you make your payments on time are examples of your financial integrity.

Capacity represents your ability to repay a loan. The amount of your income and assets are compared against your monthly debts to make sure you can afford a loan.

Collateral is the asset securing the loan — in other words, the value of the home itself. If you default on your payments, the home can be repossessed by the lender.

Capital is how much money you’re able to invest in the collateral, represented by your down payment. The amount of capital you contribute shows that you have “skin in the game” and reduces the risk to the lender.

Before you start looking at houses, work with your loan officer to get pre-qualified, so you know how much home you can afford. This can help you narrow your home search to houses within your budget, give you an idea of how much you’ll need for a down payment, and help you identify budgeting goals to work toward.

While getting pre-qualified can be a big advantage during your home search, it’s not a guarantee for a loan. Getting approved for a mortgage happens later in the process.

In addition to your down payment and monthly mortgage payment, there are several other costs that come with buying a home. These are called closing costs.

Aside from the actual real estate transaction, there are several other fees that come with buying a home.  These will vary depending on your situation, but be sure you also save for:

• Moving costs. From packing supplies to hiring a moving company, moving can hit you with a lot of unexpected expenses. Make sure you budget and save for these ahead of time.
• Maintenance & repairs. Owning a home includes the added responsibility of upkeep. If an appliance breaks down or your roof starts to leak, you'll have to cover the costs to repair it.
• Utility Bills: Moving from an apartment to a house? If you weren't paying for water and garbage before, be aware that you'll be responsible for these charges going forward, in addition to your normal utilities.
• Homeowners' Association Fees: If you move into a condo, townhouse, or subdivision, you may have to pay a monthly HOA fee to cover amenities, which may include trash removal, lawn care, and access to a community clubhouse, pool, or gym, to name a few.

The checklist below will give you an example of the most commonly requested items, but each loan application is unique so your lender may request more, or less, documentation after reviewing your application.

Verifying your income
Income verification involves not only verifying what you currently receive, but also determining the likelihood that you will continue to receive that income in the future.

• Paystubs from within the last 60 days
• W2s from the last two years
• Social Security Income? – collect a copy of your award letter and most recent bank statement showing the deposit going into your account
• Pension, disability, or other automatic income deposits?  Copy of award letter showing how long you will receive the income for, and the amount you will receive.
• Rental Income?  Locate up to most recent two years of tax returns

Verifying your assets
Which account are your closing costs or down payment funds coming from?  Lenders are required to verify certain funds are readily available in your account and are also required to trace the source of certain large deposits.

• Two most recent bank statements, make sure they are within the last 60 days, and you provide all pages of the statement.  (yes, even the blank ones)
• If you are listing retirement account funds on your application, we’ll need a copy of your most recent quarterly account statement.

Are you Self-Employed?
If you are self-employed, or a portion of your household income is from self-employment, additional documents will be requested

• Two years of business tax returns, with all schedules (if applicable)
• Most recent three months of business bank account statements dated
• Year-to-date Profit and Loss statement

Do you receive Rental Income?
Lenders are required to verify the total monthly payment amounts for each rental property, including the amount owed for financing, property taxes, insurance, or HOA dues.

• Most recent mortgage statement for each financed property
• Copy of your property tax bill and hazard insurance declarations page for each property owned

1. Don't apply for credit (such as a new credit card, car loan, or financing for furniture or appliances)
2. Don't make major purchases
3. Don't liquidate funds
4. Don't make large deposits
5. Don't switch jobs

All of these factors could impact your final closing, even if you’ve already been approved!